1.14/3 Question 5 View Policies Show Attempt History Current Attempt in Progress Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp. Coolplay would need to purchase and and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for sessions of week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Coolplay can sell the property for more than it was originally purchased for. The following amounts have been estimated Cost of land $331,200 Cost to build soccer fields, dorm and dining facility $662,400 Annual cash inflows assuming 150 players and 8 weeks $1,015,680 Annual cash outflows $927.300 Estimated 20 years Salvage value $1656.000 Discount rate Click here to view the factor table Your answer is correct. Calculate the net present value of the project of the net present value is negative, se either a negative in preceding the number O decimal places, 125. For calculation purposes, we decim a ces as displayed in the factor table provided) 45 or parentheses . 1451. Round answer to Net present value $ 2256 Should the project be accepted The project should be accepted. e Textbook and Media Attempts of used Your Arower Correct Answer To gauge the sensitivity of the project to these estimates, assume that only 125 players attend each week, annual cash inflows will be $888.720 and annual cash outflows will be $828,00 To gauge the sensitivity of the project to these estimates, assume that If only 125 players attend each week, annual cash inflows will be $868,720 and annual cash outflows will be $828,000. What is the net present value using these alternative estimates of the net present value is negative, se either a negative sin preceding the number Round answer to decimal places, s 125. For calculation purposes, we decimal places as displayed in the factor the provided) 45 or parentheses (45) Net present values Should the project be accepted? The project should be rejected t Assuming the original facts, what is the net present value the project is actually er than first assumed and a 10% discount rate is more appropriate the net present value is negative use either a negative sign preceding the number 45 or parentheses 1451. Round answer to decimal places, 125. For calculation purposes, use 5 decimal places as displayed in the factor table previded) Net present value Should the The project be accepted
